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KPCL annuls Alstom's bid for Bidadi gas project

Bangalore, Sept 12, 2013, dhns:

Karnataka Power Corporation Limited (KPCL), following a State government directive, has annulled the contract of the 700-MW gas plant in Bidadi awarded to Switzerland-based energy solutions major Alstom.

Incidentally, the World Bank had debarred Alstom Hydro France and Alstom Network Schweiz AG (Switzerland) - in addition to their affiliates - in February last year for a period of three years following Alstom’s acknowledgment of misconduct in relation to a bank-financed hydropower project.

The government, in its recommendation, directed the KPCL to ‘override’ the present contract and call for fresh tenders, since the previous tendering process was not transparent. Further, the State government also cited the blacklisting of the firm by the World Bank.

KPCL Managing Director M R Kamble said fresh tenders would be called under the e-tendering process and completed in December. The project will begin by January next year. “We are expecting the first phase of the project to be completed in the next 30 months,” he added.

The Bidadi gas-based project has been surrounded by controversies after the awarding of contract to Alstom and subsequent legal battle with another bidder for the same project, with Larson & Toubro (L&T) approaching the Karnataka High Court, contesting the KPCL’s move to term its bid unresponsive.